Buying a New Build in the Current Climate
Discussion
I'm in the very early stages of buying a new build. Before anybody says anything, I know for most it's not ideal but it works for my situation now and for at least the next few years.
What I want to know, as I'm a first time buyer is what kind of bargaining position am I in, to negotiate price and upgrades given the current climate, the sales guy last week tried to tell me they where very busy due to the new situation with stamp duty, but are people really buying new houses just because they can save a few grand here or there because of stamp duty, I find that hard to believe?
I want to be able to go in and negotiate knowing full well what climate I'm dealing with as opposed to some rubbish a salesman is talking.
What I want to know, as I'm a first time buyer is what kind of bargaining position am I in, to negotiate price and upgrades given the current climate, the sales guy last week tried to tell me they where very busy due to the new situation with stamp duty, but are people really buying new houses just because they can save a few grand here or there because of stamp duty, I find that hard to believe?
I want to be able to go in and negotiate knowing full well what climate I'm dealing with as opposed to some rubbish a salesman is talking.
I can only share what I know from our own experience but securing any form of deal on the list price of a new build is difficult, you have more chance with negotiating to have flooring/interior upgrades thrown in.
Granted we were not FTB however we were buying the largest house design on the development and managed to have carpets and flooring included as well as the drive way block paved.
Don't be put off buy a new build, we have been in ours for 3 years and no significant issues, no real shrinkage cracks, everything works and its easy to decorate.
Granted we were not FTB however we were buying the largest house design on the development and managed to have carpets and flooring included as well as the drive way block paved.
Don't be put off buy a new build, we have been in ours for 3 years and no significant issues, no real shrinkage cracks, everything works and its easy to decorate.
Developers tend to slow down building and restrict supply rather than drop price. I think there is a bit of pent up demand at the moment, but come the autumn I think your bargaining power will be better.
Location is also important. I think with a shift to home working larger homes in commutable rural locations are now far more appealing than smaller city centre houses and flats and we will see an adjustment on prices.
Location is also important. I think with a shift to home working larger homes in commutable rural locations are now far more appealing than smaller city centre houses and flats and we will see an adjustment on prices.
Usually depends what stage the house build is at. If it is near build complete developers are more likely to look at the price (or include extras) but if it is only at plot stage there is plenty of time for someone to come along who will pay the list price. Also worthwhile finding out when the developers financial year end is. Surprising what developers will do to get another sale in this trading year rather than next years.
66Elan said:
Usually depends what stage the house build is at. If it is near build complete developers are more likely to look at the price (or include extras) but if it is only at plot stage there is plenty of time for someone to come along who will pay the list price. Also worthwhile finding out when the developers financial year end is. Surprising what developers will do to get another sale in this trading year rather than next years.
3 of the new build sites I'm currently working on have sold/are selling plots 'off plan' so very doubtfull you will get a discount from list price, these are all on the south coast so location possibly a factorCubanPete said:
Developers tend to slow down building and restrict supply rather than drop price. I think there is a bit of pent up demand at the moment, but come the autumn I think your bargaining power will be better.
Late season shopping, yes.I bought ours 6 years ago in the Autumn and got nearly 10% off the asking price plus flooring / lighting packs (ffs, worse than Porsche and their optional seats). I guess the housebuilder wanted shot of it before winter set in.
We purchased our first new build two years ago with Berkley. The property was £520k. The developer was not keen to drop the value of the home but paid our legal fees, stamp duty and, provided all flooring.
A friend purchased with Bellway last week. He managed to get all flooring, a kitchen island, legal fees and, granite worktops.
To me it looks like £10k is built into the price at least for extras and luring customers. May be even £20k in some cases. Negotiating on extras is definitely possible. As my husband says. You don’t ask you don’t get.
A friend purchased with Bellway last week. He managed to get all flooring, a kitchen island, legal fees and, granite worktops.
To me it looks like £10k is built into the price at least for extras and luring customers. May be even £20k in some cases. Negotiating on extras is definitely possible. As my husband says. You don’t ask you don’t get.
We bought a new build as an investment property last year; slightly different circumstances, slightly different market. From that I recall, list was £200, but they threw in stamp duty (a good chunk on 2nd properties), solicitors fees, flooring etc. It was a two bed coach house.
In the end, we said s*d the extras, best price and picked up for £180k as that made the LTV on the buy-to-holiday-let work better. Being able to complete swiftly helps, for the house-builders, cashflow is king.
We've had several new builds over the years, homes and investments. Positives: Brand new, low maintenance for 5-10years, no one else has lived in it (makes my teeth itch, other peoples carpets....), Negatives: you pay a bit over the odds but soon balances out after a couple of years, car parking can be a bl**dy nightmare as architects and councils seem to live in a one car per household green utopia.
Edited to add: would very much think it depends on location and local economy, above was west Cornwall.
In the end, we said s*d the extras, best price and picked up for £180k as that made the LTV on the buy-to-holiday-let work better. Being able to complete swiftly helps, for the house-builders, cashflow is king.
We've had several new builds over the years, homes and investments. Positives: Brand new, low maintenance for 5-10years, no one else has lived in it (makes my teeth itch, other peoples carpets....), Negatives: you pay a bit over the odds but soon balances out after a couple of years, car parking can be a bl**dy nightmare as architects and councils seem to live in a one car per household green utopia.
Edited to add: would very much think it depends on location and local economy, above was west Cornwall.
Edited by dgswk on Sunday 16th August 09:01
I bought a new build 10 years ago and managed to get £10k off advertised price plus upgraded carpets and a few other bits. Think list price was £195k and we paid £185k plus maybe £5-10k worth of “freebies/upgrades”. They also bought my old house off me. I’ve not heard of many people getting as good a deal as I got but I guess it’s something to aim for.
NB: I know you aren’t asking but I wouldn’t buy new build again.
NB: I know you aren’t asking but I wouldn’t buy new build again.
Just moved into a new build in the Midlands and got some discount and some extras (floors, better tiles, appliances, turf and spotlights).
From what I have been told, Most fittings are ordered around the time the roof is installed. After that point the developer would spec some extras to make the house look better
This was as a FTB on a 3 bed house. Probably the logic is different on bigger/more expensive houses.
From what I have been told, Most fittings are ordered around the time the roof is installed. After that point the developer would spec some extras to make the house look better
This was as a FTB on a 3 bed house. Probably the logic is different on bigger/more expensive houses.
JapanRed said:
I bought a new build 10 years ago and managed to get £10k off advertised price plus upgraded carpets and a few other bits.
Very different market back then, we bought a new build at a similar time, £210k asking price we put in an offer of £160k, final deal was £170k + the usual 'upgrades'.The market right now is in a very different place, getting anything off list price would be an achievement.
Depends on the developer, time of year, house type, and so on.
We’ve had two new builds. The first one was nearing completion; a semi detached 3 bed. We found out that next door had had the loft space converted so insisted that they do the same with this one (£15k price difference). They started work the following day off the back of a £200 refundable deposit - desperate to sell. Also paid our stamp.
Second new build (last summer) was up for £380k. We got £10k off, stamp duty paid and ‘upgraded’ flooring and fittings (tiles, etc. Rather than carpet) throughout.
The allure of the new build was HTB; where we wanted to live, and in the house type we wanted, we simply would not have been able to afford to buy. I’m slightly concerned about the impact of CV on house prices, but we have another 4 years to go until that becomes an immediate concern. In all honesty I think we will sell at that point as we will be looking to relocate anyway. That said, I can’t see house prices dropping where we are (semi rural nice market town) so hopefully we will be able to take our equity plus some growth and cash out.
We would not buy another new build, but they have worked for us so far. The end game is a cottage with some land in North Wales.
We’ve had two new builds. The first one was nearing completion; a semi detached 3 bed. We found out that next door had had the loft space converted so insisted that they do the same with this one (£15k price difference). They started work the following day off the back of a £200 refundable deposit - desperate to sell. Also paid our stamp.
Second new build (last summer) was up for £380k. We got £10k off, stamp duty paid and ‘upgraded’ flooring and fittings (tiles, etc. Rather than carpet) throughout.
The allure of the new build was HTB; where we wanted to live, and in the house type we wanted, we simply would not have been able to afford to buy. I’m slightly concerned about the impact of CV on house prices, but we have another 4 years to go until that becomes an immediate concern. In all honesty I think we will sell at that point as we will be looking to relocate anyway. That said, I can’t see house prices dropping where we are (semi rural nice market town) so hopefully we will be able to take our equity plus some growth and cash out.
We would not buy another new build, but they have worked for us so far. The end game is a cottage with some land in North Wales.
dgswk said:
We bought a new build as an investment property last year; slightly different circumstances, slightly different market. From that I recall, list was £200, but they threw in stamp duty (a good chunk on 2nd properties), solicitors fees, flooring etc. It was a two bed coach house.
In the end, we said s*d the extras, best price and picked up for £180k as that made the LTV on the buy-to-holiday-let work better. Being able to complete swiftly helps, for the house-builders, cashflow is king.
We've had several new builds over the years, homes and investments. Positives: Brand new, low maintenance for 5-10years, no one else has lived in it (makes my teeth itch, other peoples carpets....), Negatives: you pay a bit over the odds but soon balances out after a couple of years, car parking can be a bl**dy nightmare as architects and councils seem to live in a one car per household green utopia.
Edited to add: would very much think it depends on location and local economy, above was west Cornwall.
This.In the end, we said s*d the extras, best price and picked up for £180k as that made the LTV on the buy-to-holiday-let work better. Being able to complete swiftly helps, for the house-builders, cashflow is king.
We've had several new builds over the years, homes and investments. Positives: Brand new, low maintenance for 5-10years, no one else has lived in it (makes my teeth itch, other peoples carpets....), Negatives: you pay a bit over the odds but soon balances out after a couple of years, car parking can be a bl**dy nightmare as architects and councils seem to live in a one car per household green utopia.
Edited to add: would very much think it depends on location and local economy, above was west Cornwall.
Edited by dgswk on Sunday 16th August 09:01
Don’t listen to the scare mongering OP.
Check the developers financial year on Companies House.
Developers are always keener to deal in the last two months of the full/half year, regardless of what the market is doing. Also, if you are buying near the end of a development you will always get a better deal than buying at the beginning - there is always an incentive to sell off the last few units.
As others have said, you are much more likely to get free extras or upgrades than cash discounts. Don't turn your nose up - sometimes these can be well worth having, and would cost much more to retro-fit.
Examples apart from the obvious kitchen/bathroom/carpet/flooring upgrades include turfed (or even fully landscaped) gardens, external power and lights, EV chargers, block paved driveways, larger patio areas, increased electric points, hard-wired networks, and in city flats especially, free parking spaces (if you don't need it let it out).
A developers "dealing margin" is built into their sales and marketing budget, and this varies from site to site; and even plot to plot as some are more incentivised than others.
Developers are always keener to deal in the last two months of the full/half year, regardless of what the market is doing. Also, if you are buying near the end of a development you will always get a better deal than buying at the beginning - there is always an incentive to sell off the last few units.
As others have said, you are much more likely to get free extras or upgrades than cash discounts. Don't turn your nose up - sometimes these can be well worth having, and would cost much more to retro-fit.
Examples apart from the obvious kitchen/bathroom/carpet/flooring upgrades include turfed (or even fully landscaped) gardens, external power and lights, EV chargers, block paved driveways, larger patio areas, increased electric points, hard-wired networks, and in city flats especially, free parking spaces (if you don't need it let it out).
A developers "dealing margin" is built into their sales and marketing budget, and this varies from site to site; and even plot to plot as some are more incentivised than others.
distinctivedesign said:
Check the developers financial year on Companies House.
Developers are always keener to deal in the last two months of the full/half year, regardless of what the market is doing. Also, if you are buying near the end of a development you will always get a better deal than buying at the beginning - there is always an incentive to sell off the last few units.
As others have said, you are much more likely to get free extras or upgrades than cash discounts. Don't turn your nose up - sometimes these can be well worth having, and would cost much more to retro-fit.
Examples apart from the obvious kitchen/bathroom/carpet/flooring upgrades include turfed (or even fully landscaped) gardens, external power and lights, EV chargers, block paved driveways, larger patio areas, increased electric points, hard-wired networks, and in city flats especially, free parking spaces (if you don't need it let it out).
A developers "dealing margin" is built into their sales and marketing budget, and this varies from site to site; and even plot to plot as some are more incentivised than others.
This. Further, with the rise of Rightmove/Zoopla it's never been easier to see what your neighbours paid. Early in the development sales discounts are essentially unheard of with any sweeteners being legal fees/stamp duty/upgrades as they're not reflected in the recorded sale price. Nearer the end, especially when plots are nearing completion without a buyer, you've got more scope to get a discount because there's not going to be someone else 6 months later using your sale price as a bargaining tool.Developers are always keener to deal in the last two months of the full/half year, regardless of what the market is doing. Also, if you are buying near the end of a development you will always get a better deal than buying at the beginning - there is always an incentive to sell off the last few units.
As others have said, you are much more likely to get free extras or upgrades than cash discounts. Don't turn your nose up - sometimes these can be well worth having, and would cost much more to retro-fit.
Examples apart from the obvious kitchen/bathroom/carpet/flooring upgrades include turfed (or even fully landscaped) gardens, external power and lights, EV chargers, block paved driveways, larger patio areas, increased electric points, hard-wired networks, and in city flats especially, free parking spaces (if you don't need it let it out).
A developers "dealing margin" is built into their sales and marketing budget, and this varies from site to site; and even plot to plot as some are more incentivised than others.
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